Rakuten Investment Management Inc. Buys New Shares in Microchip Technology Incorporated $MCHP

Rakuten Investment Management Inc. purchased a new stake in shares of Microchip Technology Incorporated (NASDAQ:MCHP) during the second quarter, Holdings Channel reports. The firm purchased 200,470 shares of the semiconductor company’s stock, valued at approximately $17,854,000.

Several other hedge funds have also recently added to or reduced their stakes in the company. Orion Capital Management LLC purchased a new position in shares of Microchip Technology in the 2nd quarter worth about $65,000. Empowered Funds LLC purchased a new position in shares of Microchip Technology during the 2nd quarter valued at about $5,380,000. United Capital Financial Advisors LLC purchased a new position in shares of Microchip Technology during the 2nd quarter valued at about $3,066,000. Bank OZK bought a new stake in Microchip Technology in the 2nd quarter worth approximately $229,000. Finally, Public Employees Retirement System of Ohio purchased a new stake in Microchip Technology in the second quarter worth approximately $20,933,000. Institutional investors own 91.51% of the company’s stock.

Insiders Place Their Bets

In other Microchip Technology news, CFO James Eric Bjornholt sold 4,112 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $75.32, for a total value of $309,715.84. Following the transaction, the chief financial officer owned 28,573 shares in the company, valued at approximately $2,152,118.36. The trade was a 12.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Richard J. Simoncic sold 5,000 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $97.52, for a total transaction of $487,600.00. Following the transaction, the chief operating officer directly owned 130,508 shares of the company’s stock, valued at approximately $12,727,140.16. This trade represents a 3.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 9,949 shares of company stock worth $864,493. Insiders own 1.79% of the company’s stock.

Microchip Technology Stock Performance

Shares of MCHP stock opened at $72.93 on Friday. The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.11 and a current ratio of 1.92. Microchip Technology Incorporated has a fifty-two week low of $48.52 and a fifty-two week high of $105.91. The stock has a 50 day moving average price of $81.90 and a two-hundred day moving average price of $81.37. The company has a market capitalization of $39.60 billion, a P/E ratio of 108.85, a PEG ratio of 0.53 and a beta of 1.76.

Microchip Technology (NASDAQ:MCHP) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.76 earnings per share for the quarter, beating analysts’ consensus estimates of $0.70 by $0.06. Microchip Technology had a return on equity of 14.97% and a net margin of 9.34%.The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the firm posted $0.27 earnings per share. The business’s quarterly revenue was up 38.0% compared to the same quarter last year. Microchip Technology has set its Q2 2027 guidance at 0.910-0.950 EPS. Analysts expect that Microchip Technology Incorporated will post 3.16 earnings per share for the current year.

Microchip Technology Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Monday, August 24th will be issued a $0.455 dividend. This represents a $1.82 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Monday, August 24th. Microchip Technology’s dividend payout ratio (DPR) is 271.64%.

Analyst Upgrades and Downgrades

Several research firms have commented on MCHP. BMO Capital Markets began coverage on shares of Microchip Technology in a research note on Friday, August 21st. They set an “outperform” rating and a $95.00 price target on the stock. Truist Financial cut their price objective on shares of Microchip Technology from $105.00 to $90.00 and set a “hold” rating for the company in a research note on Friday, August 7th. Wall Street Zen raised shares of Microchip Technology from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Weiss Ratings upgraded shares of Microchip Technology from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 11th. Finally, Susquehanna boosted their price target on shares of Microchip Technology from $95.00 to $120.00 and gave the stock a “positive” rating in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $98.67.

Microchip Technology Profile

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.